In your overwhelmed state, unsure where else to turn, you may be quick to assume that declaring bankruptcy will solve all your financial problems in one clean sweep. But in the wake of your bankruptcy case, you may be riddled with other forms of financial consequences, such as a diminished credit score, a barrier to applying for loans, and much more. This is why we urge you to sit down and deeply contemplate this action before taking it. For more, please continue reading to learn whether filing for bankruptcy is a good idea and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help you make a well-informed decision.
Is filing for bankruptcy a good idea for me?
We cannot easily say whether filing for bankruptcy is a good idea for you without knowing your unique financial situation. So we strongly encourage you to schedule a free initial consultation with our law firm, where one of our talented attorneys will analyze your circumstances and offer sound legal guidance. But in the meantime, you may want to ask yourself the following preliminary questions to deduce whether a bankruptcy filing is likely a step in the right direction:
- How much debt do I have, and what type is it (i.e., secured or unsecured)?
- What are my assets (i.e., exempt or nonexempt), and am I willing to give some of them up?
- Realistically, can I pay off all my debt within the next five years without any outside aid?
- Are my creditors beginning to pursue aggressive collection activities against me?
- Am I willing to have my spouse or co-signer(s) suffer the consequences of my filing?
- Can I handle the aftermath of my filing (i.e., negative credit scores, loan approvals, etc.)?
What alternatives to bankruptcy might be a better idea?
Depending on how you answered the aforementioned questions, you may resign to the fact that a bankruptcy filing is probably not the best fit for you. But still, there may be no doubt that you are in serious financial trouble that needs some sort of resolution. Well, also at your free initial consultation with our firm, one of your proficient attorneys will go over the available bankruptcy alternatives and steer you towards the one that makes the most sense. With that being said, below are alternatives to bankruptcy that might be deemed a better idea:
- Create a personal debt consolidation plan (i.e., apply for new loans).
- Utilize a debt management plan with a nonprofit credit counseling agency.
- Enter negotiations for a debt settlement plan with your outstanding creditors.
- Develop a realistic monthly budget that frees up cash to put towards your debt.
- Liquidate your non-essential assets and use the funds to pay off your creditors.
Before you find yourself in an even worse position, you must retain legal representation from The Law Offices of Allen A. Kolber, Esq., P.C. A skilled Rockland County bankruptcy attorney from our law firm will guide you on what to do.
